TAILINGS DAMS – BRAZIL

BHP in $7bn deal on Brazil disaster

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Original article by Matt Chambers
The Australian – Page: 22 : 27-Jun-18

BHP Billiton has agreed to an uncapped settlement with Brazilian prosecutors regarding a damages claim arising from the tailings dam collapse at the Samarco iron ore mine in 2015. The agreement has fully settled the initial damages claim of 20 billion Brazilian real against BHP and joint venture partner Vale, while a civil claim for 155 billion real has been suspended for two years. Tyler Broda of RBC Capital Markets says the settlement should eventually allow production at Samarco to resume.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, RBC CAPITAL MARKETS, BP PLC

BHP expects $79b in Brazil claims to fall

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Original article by Peter Ker
The Australian Financial Review – Page: 13 & 18 : 22-Sep-16

The 2015-16 annual report of BHP Billiton shows that the five biggest legal claims arising from the Samarco tailings dam disaster in Brazil total 194.5 billion real ($A79.04bn). Project operator Samarco is the subject of more than 23,000 claims for damages and compensation, and joint venture partners BHP and Vale will be liable for any payouts that cannot be financed by Samarco itself. BHP anticipates that the final cost of compensation payouts will be much lower than the value of the claims that have been received to date.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA

How the Samarco disaster unfolded

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Original article by Mark Ludlow
The Australian Financial Review – Page: 36 : 31-Aug-16

The collapse of the Fundao tailings dam at the Samarco mine in Brazil has been found to be caused by a series of events related to structural problems. The accident occurred on 15 November 2015. Its causes were analysed by consultants Cleary Gottlieb Steen & Hamilton. The study was commissioned by Samarco Mineraco’s joint owners BHP Billiton and Vale.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, CLEARY GOTTLIEB STEEN AND HAMILTON LLC

Samarco dam disaster swells BHP’s exceptional items bill

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Original article by Peter Ker
The Australian Financial Review – Page: 17 : 29-Jul-16

BHP Billiton has advised that its 2015-16 financial accounts will include an additional $US1bn worth of impairment charges associated with the Samarco iron ore tailings dam disaster in Brazil. Exceptional items in the resources giant’s full-year accounts are expected to top $US7b ($A9.4bn). BHP’s Samarco joint venture partner, Vale, has also revealed significant impairment charges as a result of the disaster. Resumption of production at Samarco is now unlikely to begin until 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, SUPREME COURT OF JUSTICE (BRAZIL)

BHP dives on fears over Brazil lawsuit

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Original article by Peter Ker
The Australian Financial Review – Page: 25 : 5-May-16

A Brazilian prosecutor intends to launch a 155 billion Brazilian Real ($US43bn) damages claim against BHP Billiton and Vale over the tailings dam disaster at the Samarco iron ore project. BHP had previously advised that the Samarco joint venture partners’ total liability was expected to be 9.2 billion Brazilian Real ($US2.58bn), after reaching a preliminary agreement with the Brazilian Government. BHP shares closed 9.4 per cent lower at $A18.79 on 4 May 2016, amid a broader sell-down of resources stocks.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, RIO TINTO LIMITED – ASX RIO, FORTESCUE METALS GROUP LIMITED – ASX FMG, OZ MINERALS LIMITED – ASX OZL, NEWCREST MINING LIMITED – ASX NCM, WHITEHAVEN COAL LIMITED – ASX WHC, S2 RESOURCES LIMITED – ASX S2R

BHP surges on dam compo deal

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Original article by Barry FitzGerald
The Australian – Page: 19 & 20 : 4-Mar-16

Shares in BHP Billiton closed 3.1 per cent higher at $A17.25 on 3 March 2016. The stock rallied after its Samarco iron ore joint venture secured an agreement with the Brazilian Government and two state governments regarding compensation and remediation work following the November 2015 tailings dam disaster. The deal could potentially allow the Samarco joint venture with Vale to resume production in 2017.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, SHAW AND PARTNERS LIMITED

BHP begins payout plan for Brazil mine victims

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Original article by Barry FitzGerald
The Australian – Page: 16 : 5-Jan-16

Samarco has commenced paying compensation to the families of victims of the iron ore tailings dam disaster in Brazil, and families that have had to be relocated. Samarco, which is jointly owned by BHP Billiton and Vale, has accepted legal liability for the disaster and the resulting compensation claims. However, a Brazilian court has ruled that BHP and Vale must also bear responsibility for environmental remediation.

CORPORATES
SAMARCO MINERACAO SA, BHP BILLITON LIMITED – ASX BHP, VALE SA

BHP bolsters Brazil team as probe into ‘deadly’ dam looms

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Original article by Barry FitzGerald
The Australian – Page: 18 : 23-Dec-15

BHP Billiton has appointed US law firm Cleary Gottlieb Steen & Hamilton to examine the causes of the tailings dam failure at its Samarco iron ore joint venture in Brazil. Meanwhile, Flavio Bulcao has been appointed as BHP’s country ­director for Brazil, while chief commercial officer Dean Dalla Valle will lead the resources group’s response to the disaster. BHP recently disputed a United Nations report on the toxicity of the tailings, which have polluted the River Doce.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, SAMARCO MINERACAO SA, VALE SA, UNITED NATIONS, CLEARY GOTTLIEB STEEN AND HAMILTON LLC, BRAZIL. MINISTRY OF HEALTH

Vale to fight decision to freeze assets

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Original article by Barry FitzGerald
The Australian – Page: 14 : 22-Dec-15

Brazilian miner Vale intends to mount a legal challenge to a court’s decision to freeze its Samarco iron ore assets. The Samarco project is jointly owned by Vale and BHP Billiton. A Brazilian judge has ruled that they may be liable for the tailings dam disaster, as project operator Samarco Mineracao lacks sufficient funds to finance environmental remediation and compensate victims of the tragedy. The Samarco stake is BHP’s sole asset in Brazil.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA

BHP assets frozen as dam pressure rises

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Original article by Eric Johnston
The Australian – Page: 15 : 21-Dec-15

A spokesman for BHP Billiton has declined to comment on a court’s decision to freeze the Brazilian assets of both itself and Vale in the wake of the tailings dam disaster at the Samarco iron ore joint venture. Vale had claimed that Samarco should be fully liable for any damages arising from the disaster, but the court ruled that Samarco lacks sufficient funds to meet all claims associated with the incident. Meanwhile, the future of BHP’s progressive dividend policy remains under scrutiny, while Moody’s is reviewing its credit rating.

CORPORATES
BHP BILLITON LIMITED – ASX BHP, VALE SA, SAMARCO MINERACAO SA, MOODY’S INVESTORS SERVICE INCORPORATED, GLENCORE PLC